South Korea’s Screen Sector Generates £12.4bn and Supports Nearly 300,000 Jobs

South Korea’s screen industry produced £12.4 billion in economic value during 2025 and sustained approximately 300,000 jobs, based on a detailed economic analysis commissioned by the Motion Picture Association. The report, produced by Oxford Economics and presented to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s significant impact to the country’s GDP via production spending, supply chain expenditure and consumer spending. Television emerged as the dominant segment, representing approximately 65% of the industry’s combined output, whilst the video-on-demand sector showed the highest productivity per worker. The findings highlight the screen industry’s vital importance in South Korea’s economy and employment landscape.

Strong Economic Engine Generating Significant Gains

The screen industry’s financial influence goes well past its direct contributions, with the Oxford Economics study uncovering a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion circulates across supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect demonstrates how investment in screen production spreads throughout multiple industries, from transport and hospitality to professional services and retail. The employment multiplier of 3.4 additionally demonstrates this effect, with each 100 direct jobs sustaining an further 240 positions elsewhere in the economy.

Tax revenues from the screen industry represent another significant economic benefit, totalling KRW7,170 billion (approximately £4.9 billion) in 2025. The sector’s workforce structure reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs concentrated in micro, small and medium-sized enterprises. These compact firms form the foundation for production networks, supporting everything from equipment rental and finishing work to promotion and delivery. The digital and technology sector accounted for the largest employment share at 116,500 jobs, reflecting the technology-driven nature of modern screen production and the technical knowledge required across the industry.

• GDP multiplier of 3.1 produces extra KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 supports 240 extra jobs per 100 primary positions
• KRW7,170 billion in overall tax receipts generated across all segments
• 78% of jobs located in SMEs and micro-businesses

Television Dominates, Streaming Becomes Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s combined GDP output with a contribution of KRW15,620 billion (£10.6 billion) and supporting 181,200 jobs. The dominance of television demonstrates both the existing framework of traditional broadcasting and the sector’s ongoing production of dramas, variety shows and documentaries that attract significant domestic and international audiences. Despite the growth of online streaming services, television’s deep roots in South Korean culture and its continued investment in high-quality content ensure its role as the sector’s main economic engine and largest employer.

However, video-on-demand services form the sector’s fastest-growing growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional output, averaging KRW437 million (£297,000) in economic value creation per head—roughly five times the national average—signalling the premium nature of streaming production. Projections suggest VOD will increase at approximately 7.4% annually through 2028, surpassing both film and television growth rates and establishing streaming as the sector’s quickest-growing segment.

Industry Breakdown and Employment Allocation

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, represents the sector’s middle ground. Whilst not as large as television, South Korea’s film industry maintains significant economic value and global standing, with productions extending across major commercial films to independent features gaining recognition at major festival events. The well-rounded combination of television, film and streaming ensures economic resilience whilst facilitating specialist development and creative advancement across different content formats and distribution channels.

Korean Content Sweeps Global Markets

South Korea’s screen industry has transcended national borders to become a formidable force in international entertainment sectors. The sector’s commercial performance is intrinsically linked to its international reach, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and North America. This global expansion has transformed the nation into a cultural powerhouse, positioning Korean production companies as serious competitors to established Western production hubs. The industry’s capacity for combining distinctive storytelling with strong production quality has resonated with global audiences, boosting both audience numbers and commercial revenues that extend far beyond South Korea’s borders.

The export potential of Korean screen content continues to expand, driven by the worldwide demand for diverse narratives and creative approaches. Streaming platforms have expedited this internationalisation, enabling Korean productions to connect with worldwide viewers in real time whilst reducing traditional market obstacles. Significant cross-border partnerships and joint ventures have become increasingly common, drawing international funding and talent to South Korean studios. This growing interconnectedness reinforces the sector’s financial stability whilst establishing Korea as an essential centre within the global entertainment landscape. The multiplier effects created by international demand spread across the supply chain, creating additional employment and funding prospects across the entire industry.

• Korean dramas reach unprecedented audience numbers across Netflix and international streaming platforms worldwide
• Film exports produce substantial foreign exchange earnings whilst elevating national cultural prestige on the world stage
• Cross-border collaborations attract overseas funding and technical expertise to Korean studios
• Global recognition stimulates visitor numbers, branded products and additional income sources outside of traditional production

Travel and Cultural Impact

The economic impact of Korean screen content stretches considerably past direct industry revenues, generating substantial travel and cultural knock-on benefits. Overseas tourists increasingly travel to South Korea deliberately to explore production sites, visit branded venues and engage with Korean popular culture. This “hallyu” or Korean Wave phenomenon has reshaped travel trends, with film and television attractions emerging as major draws for visitors from across Asia and beyond. The cultural sway exerted by acclaimed content creates lasting brand value for South Korea, enhancing the nation’s cultural influence whilst generating significant revenue via tourism spending, accommodation and dining and cultural merchandise.

The relationship between screen production and tourism establishes a positive economic loop that enhances the sector’s wider impact to national prosperity. Successful TV shows and movies encourage international travel, whilst tourists subsequently consume further Korean cultural goods and services. This trend has spurred development of screen tourism infrastructure, including entertainment parks, exhibition spaces and curated tours around renowned production locations. The created employment positions span hospitality, transportation and retail sectors, stretching the screen industry’s financial reach far more than conventional production measures and showcasing its driving force in Korea’s wider economy.

Obstacles and Prospects Ahead

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and global production facilities providing significant tax benefits. Increasing production outlays, talent retention challenges and the rapid technological evolution of distribution technology present ongoing obstacles to ongoing development. The sector must contend with more intricate regulatory frameworks across various regions whilst responding to changing viewer preferences towards diverse content formats. Additionally, the clustering of investment within larger production companies undermines the long-term prospects of independent producers that currently employ over three-quarters of the workforce, possibly limiting creative development and creative diversity.

Looking forward, the sector’s path hinges upon strategic investment in cutting-edge innovations and talent development programmes. Video-on-demand platforms are projected to drive expansion at approximately 7.4% annually through 2028, significantly exceeding traditional television and film segments. However, unlocking this potential requires coordinated efforts to enhance production facilities, cultivate tech-savvy creators and strengthen intellectual property protections across global territories. The report’s conclusions underscore the pressing need of forward-looking regulatory measures to ensure South Korea maintains its competitive edge within the dynamic global entertainment landscape whilst preserving the ecosystem enabling smaller production companies.

• Growing competitive pressure from global streaming services threatens local market position
• Increasing filming budgets and talent recruitment challenges strain smaller production houses
• Rapid tech evolution demands ongoing investment in equipment and staff development
• Regulatory challenges in multiple territories heightens regulatory obligations significantly
• Market consolidation threaten to reduce creative variety and independent production opportunities

State Backing and Skills Enhancement

Government support mechanisms remain critical to maintaining the sector’s development momentum and protecting employment across micro and small enterprises. South Korea’s policymakers need to emphasise strategic investment for independent producers, digital capability development schemes and infrastructure investment to enhance the sector’s resilience against overseas competitors. Tax breaks, financial grants and reduced-cost facility provision can support fair competition for independent firms whilst encouraging innovation in emerging formats and technologies that shape next-generation entertainment.

Funding for talent development programmes tackles the sector’s most pressing challenge: attracting and retaining experienced practitioners across production, technical and creative disciplines. Academic collaborations with academic institutions, apprenticeship programmes and coaching schemes can develop the coming generation of Korean film and television professionals whilst fostering business start-ups. Enhanced support for up-and-coming professionals through incubation programmes and accessible finance solutions would bolster the landscape supporting smaller companies, ensuring the sector’s continued dynamism and cultural relevance on the global stage.